FMG Iraq Fund Limited

Description.

Back in the 1990’s, the thought of investing in the “robber” economy of Russia, scared many potential investors. The Russian RTS index then traded at 100. Some 14 years later this index is now around 1500!
Today, another similar opportunity has arisen: Iraq

Why Iraq? 

Iraq sits on the third largest oil reserves in the world and has the potential to overtake Saudi Arabia as the world’s largest oil producer. Current Iraqi production is around 2.5mn bbl/d but the government is aiming to produce 10-12m bbl/d by 2020.

Iraq may now have bottomed in terms of the post-war era and is now refocusing its attention on rebuilding the country. The catalyst for change being revenues from an increasing oil production. Iraq is the least explored (as little as 10%) country of this oil-rich part of the Arab world. Estimates for Iraq’s total oil reserves range from 200bn to 300bn bbl which matches those of Saudi Arabia which currently holds the world's largests oil reserves. Iraq has a stock market capitalization of $2.5bn which is less than 1% of Saudi Arabia’s, despite almost matching Saudi’s oil reserves. 

The Stock market is largely untouched by international investors but for how long…?

Strategy.

After decades of oppression and war Iraq is emerging as one of the most exciting frontier market stories in the world. 

The Fund offers investors an easy way to participate in this exciting market. The Fund will be focusing on investments on Iraq Stock Exchange but can also have investments in internationally listed companies operating in Iraq. 

The majority of the exposure will be long only over time. The Fund will be positioned to take advantage of the growth derived from post-war reconstruction and massive oil production expansion. Iraq’s estimated oil reserves match both those of Russia and Saudi Arabia, yet the total stock market capitalization is only 0.8% of Saudi’s and 1% of Russia’s. Proven Iraqi oil reserves, at an oil price of $80 per bbl, would be valued at more than $9 trillion... 

The market is untouched by international investors and does not correlate to global stock markets.

Information.

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